BIG SUR — The iconic Ventana Big Sur resort perched high above the scenic Monterey County coast has been bought — yet again — in a record-setting mega-deal — yet again.
Host Hotels & Resorts has paid $150 million to grab the 59-room Ventana Big Sur resort, which was sold by an affiliate of Hyatt Hotels.
Only three months ago, the Hyatt affiliate paid $148 million for the 160-acre property.
The latest price sets an all-time record for the purchase of a California hotel: $2.54 million a room. The previous record was $2.51 million for the same resort.
“This ultra-luxury resort is one of the most uniquely located hotels in the United States,” Jim Risoleo, chief executive officer with Host Hotels & Resorts, the latest owner, told analysts during a conference call Thursday.
Risoleo pointed to multiple factors that could shield the Ventana Big Sur resort from new hotels that could become competitors in the near future.
“It benefits from extremely limited supply and high barriers to entry due to strict land-use regulations by the California Coastal Commission,” Risoleo said.
The stunning price per room for the Ventana Big Sur hotel may seem to fly in the face of the brutal battering that the coronavirus has unleashed on the hotel and travel sectors worldwide.
Yet the deal underscores the robust nature of California’s top resort areas that can be reached by people from nearby parts of the state.
Alan Reay, president of Atlas Hospitality Group, which tracks the California lodging market, opined that investors are willing to pay sky-high prices — if they can get excellent locales.
Ventana Big Sur, Four Seasons hotel in the Napa Valley town of Calistoga and Montage Healdsburg in Sonoma County all sold for high prices, but are deemed to be in choice spots, Reay said.
“These hotels are all in A-plus-plus-plus locations with huge barriers to entry,” Reay said.
Here’s how the recent big-time hotel deals stack up:
— Ventana Big Sur, $150 million, 59 rooms, or $2.54 million a room.
— Four Seasons in Calistoga, $175 million, 85 rooms, or $2.13 million a room.
— Montage Healdsburg in Sonoma County, $265 million, 130 rooms, or $2.04 million a room.
“Investors are looking at deals that even if they pay record prices, they want to be sure that no new hotels are going to be able to compete against them in the near future,” Reay said.
When closing costs and certain adjustments are taken into account, Hyatt captured virtually no profit from the hotel sale. Reay believes Hyatt envisions other advantages that go well beyond turning a profit on flipping the resort just a few months after buying it.
“Hyatt had owned the hotel with the intention of turning it into a long-term management contract,” Reay said.
And in fact, Hyatt’s Alila brand has obtained such a management contract with the new owner, Hyatt said.
The Ventana Big Sur resort occupies 160 acres that are described as “irreplaceable,” as Risoleo described it.
The Monterey County hotel contains both rooms and suites. It offers a luxury spa, three pools, a fitness center, event space, two restaurants and private dining experiences. Outdoor amenities include 63 campsites and 15 luxury tubs.
“Ventana Big Sur benefits from the use of both the ocean and the redwood forest and is a drive-to destination for some of the country’s most affluent areas,” Risoleo said.
Source: www.mercurynews.com